A taxpayer in a particular country currently pays tax on their gross income as:- Taxable income
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Question:
A taxpayer in a particular country currently pays tax on their gross income as:-
• Taxable income is income above the tax-free personal allowance of £11500
• The first £33 500 of taxable income is taxed at 20%
• Any remaining taxable income up to £150 000 is taxed at 40%
• Any remaining taxable income is taxed at 45%
In this country the workforce is summarised as:-
Using the data above estimate how much income tax the government will receive. Estimate also the total income tax as a percentage of total salary.You must explain all your working clearly using correct language, grammar and notation.
Related Book For
Taxes and Business Strategy A Planning Approach
ISBN: 9780132752671
5th edition
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon
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